But interest rates have been low for nearly three years now, and there’s not much difference between earning 1.11% on your savings at one bank and 1.09% at another. In an environment like this, how do you decide which online bank to use? That’s what Jennifer wants to know. She wrote looking for the best online bank accounts for service and security. Here’s her question:

I have a question about the pros and cons of online banks. I’ve read horrifying reviews from customers who have had problems accessing their money, with transfers, and with identity theft when using this type of account. I’ve been considering opening an online account to get a higher rate on my emergency fund, but each time I get close, I see another bad review and get scared away.

Have you (and other GRS readers) had bad experiences with online banking? Which online banks have people had success with?

Jennifer’s question is tough for one person to answer. Though I can crawl the web looking for the best high-interest savings accounts (or partner with Money Rates to do the work for me), there’s no easy way for me to test the service and security of every online bank. (Trent at The Simple Dollar once decided to make a project out of testing and reviewing online banks. That lasted just a single month!)

Reminder

Online banks offer the same sorts of products and services as traditional banks, but online banks don’t have storefronts, so you can’t walk in and talk to a teller. You have to make all of your transactions online, by phone, or via snailmail. But for many people, these aren’t drawbacks — they’re advantages.

Some folks are worried about online financial transactions of any sort. But the July 2009 issue of Consumer Reports Money Adviser cites research predicting that three-quarters of American households with internet access will bank online by the end of this year. And Money Adviser claims that online banking may actually be safer than traditional banking because there’s less of a paper trail and your transactions are digitally encrypted.

There aresites out there that allow customers to review varios online banks, but I think their methodology is flawed. Who’s going to seek out a place to review an online bank when they’re happy with the service? Instead, you mostly get folks who are disgruntled for various reasons. (And reading some of the reviews, it sounds like the problem is often with the customer, not the bank!)

So, if a single blogger can’t survey all of the online banks for safety and security, and if the review sites aren’t really that effective either, what’s left? Well, this sounds like a job for crowdsourcing. What one man can’t answer alone, maybe many people can!

Leaving interest rates aside for a moment, please share your experiences with online banking. From your experience, which is the best online bank for service and security? Which banks are not so good?

I realize this survey is completely unscientific — and that most of us will have tried only one online bank — but maybe our personal anecdotes can help paint a picture of which online banks offer the best safety and security. Maybe we can help Jennifer (and others like her) enter the brave new world of internet banking!

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I use the online banking with Wells Fargo. It gives me the option of going into a local bank if needed (and the niceties of a safety deposit box) and the convenience of banking on my hours. They are very security conscious and have at one point frozen my account and called me because someone attempted to access the account from outside of my local area. On other occasions, they have flagged out-of-character use of the debit card. All of these situations have been resolved with a call to customer service and informing them of whether or not xyz was done by me. I’d recommend them :)

I have used ING Direct since 2004. I have never had a problem, never had my identity stolen, and never been able to get at my own money. I’ve also never paid them a fee for this account, and have always had a “competitive” interest rate on it.

It always takes more than 2 business days to transfer the money out of that account, which to me is a PLUS because it means I cannot make a spontaneous purchase without some down-time to think it over!
I have made thousands of dollars in interest over the last 6+ years with that account, and I have set up a recurring transfer of $100 out of every paycheck so that my savings are automatic.

Whenever I have had to call ING Direct for a question or look at their Help pages, they have been EXTREMELY friendly, helpful and easy to understand! They are like a group of friends or long-lost-cousins that I interact with on my savings goals.

I have had an account at ING Direct for several years (just savings, not checking). I have it split up into several different targeted savings accounts (house taxes, christmas, emergency, special projects, travel). I have automatic drafts set up to go into each of those accounts every month plus I access the account directly on line several times a month to do various things. My experience with them has been extremely positive and I recommend them all the time.

I use Charles Schwab High Yield Checking and ING Direct for savings. Both pay decent interest relative to other banks, although as JD notes, the difference is minimal. I’ve been extremely happy with Schwab for checking, as they allow for free ATM withdrawals anywhere (from any ATM), interest on a checking account, and you can mail in your checks with free postage paid envelopes. For the latter, I realize that that is a downside to some people, but I love the feature. I never have to go to a physical branch to deposit anything, and I can withdraw from anywhere for free.

On the flip side, I haven’t been extremely pleased with my ING account. Sure, the interest is competitive, but I have had more problems associated with this account than any other I’ve held previously. You must call in a few times to verify your identity, you must answer extra questions each time you log in, and you can’t login with anything other than a 7 digit number they randomly select. You’d think an email or username would be easy enough to use, but apparently it’s not secure enough!

I wish that Bank of America was as security-conscious. Someone failed all three of my security questions and yet was able to order a replacement debit card, reset the pin, and then steal both from my mailbox. They also got access to my online banking, again failing security questions, and then transferred money from my savings to my checking. He or she went through $14,000 dollars within hours, making purchases at several Publix and Walmart stores.(money orders? credit cards?) The bank was not very forthcoming about just what information the thief had or why he was able to bypass the security questions. Needless to say we’ve made many changes and taken security measures, including changing banks after the money was returned to the account.

I am currently using Sallie Mae online bank. Haven’t had any problems with them so far and they seem to be at least trying to keep their rates competitive with a 1.3% right now. Only thing is that if you need to transfer money back to your linked checking account it sometimes takes 2 days for the funds to move.

I’ve had an Ally savings account for almost three years. So far, no problems with security, transfers in and out, online statements, or customer service. No minimum balance or monthly fees. There’s a limit of six withdrawals (unlimited deposits) per cycle, which doesn’t affect me as I don’t make that many. When I opened it, the interest rate was 2.25%; now it’s 1.09%. I have been mulling BankDirect, which earns American Airlines miles every month based on balance, but haven’t read enough to make an informed decision.

I use ING and never had any problems. Once use transfer funds into your ING account, it’ll take about 2 days to show in your balance and 5 business days to become available for withdrawal. I’ve never withdrawn money, yet, but I believe ING says it takes about 2 days to fund your checking.

I think their security is great. To login you need your I’d number, then you go to a page that will show a picture and word/phrase that you chose when you first created the account (helps to make sure you’re actually on ING’s website), and then you enter your password that you pick.

ING also has a great mobile app. I can’t remember the last time I was on their site with my computer.

First, answer this: how does a person at the client side of a bank’s internet operation KNOW if a bank is secure? Just having a lock icon in the browser bar hardly means anything; they could have a “secure-looking” site, but still be vulnerable to cookie forging, SQL injection attacks, man-in-the-middle attacks, any number of things.

There’s no way for the consumer to audit the bank’s internal security practices. Maybe their security on the client side is air-tight, but they have B2B interfaces with more holes than a sieve. Any bank, even a storefront, can have such electronic security problems.

FWIW, I make a living writing and maintaining online systems that handle millions of tax returns a year, and what I know is that there’s no way I CAN know if any given bank has good online security, unless they allow me access to audit their code, their equipment, what operating systems they use internally and what their practices are in maintaining and configuring them, their backup practices, and any number of other things.

Luckily, due to several federal laws, my systems, and I assume banks as well, have to pass annual 3rd party security reviews, and we’re required to fix problems that they find before getting certified.

I use Ally.com, but only for a couple of months. I’m impressed by their customer service, and I have no reason to believe that they have security problems.

I’ve only had experience with one online bank: ING. I’ve had an account there for just under a year now. It’s awesome. I haven’t had any problems. They let you create multiple accounts that you can name and siphon funds to (e.g. “Car Downpayment) and you can schedule electronic transfers (one-time or recurring) online in a snap. The only downside is that funds take at least 1-2 days to be available, so I only use it for money that I don’t need right away. I still have a checking account and savings account at a credit union for these reasons.

I use ING, USAA, and SmartyPig, all of which have proved to be convenient, secure, and very user-friendly; they also offer competitive interest rates on savings and cd’s. I have also had good experience w/PNC’s online banking site (this is the only bank with which I occassionally deposit a check at their physical location).

My husband and I debated back and forth over which online bank to choose for a high yield savings account. Ultimately we went with Ally because they have 24 hour customer service. To me that was a great benefit because IF something were to go wrong who wants to wait until tomorrow to talk to someone?

We’ve only had our account for about 2 months and have only transfered money in, not out but we have been pleased as punch with the ease of setting up both recurring and one-time transferes. I also have had no trouble with Ally syncing up with Mint which we use for our budget.

I’ve had ING accounts since 2007, and the only downside I’ve seen so far is that they charge a 1% international transaction fee on their checking accounts (lower than some others though) and you can’t link up an international account, but that probably wouldn’t be a factor for most people. The service is great; they’ve been quick and helpful, when I’ve needed to have questions answered.

ING, ING, ING. Whenever I have had to communicate with them (such as when opening my account and when changing my last name when I got married), the customer service has always been prompt, efficient, and friendly. I would definitely say it is better than the service I have received at national B&M bank where my checking account is. As mentioned, I like the security system they have on their website as well. Much more secure than most banking sites AFAIK.

We use ING Direct for our emergency fund and I feel that it is very secure (even more so than my local bank). It does take 2 days as mentioned above for a transfer, so I keep a small amount in a local savings account for immediate access if I need it. I have made a withdrawal on the account once and had no problems.

I have been using Savings Square for several years. I’ve never had problems with a transfer (in or out). When I call for assistance, I always speak with the same person. She’s knowledgeable, helpful, and friendly. I considered moving to ING since it is more well know, but the service has kept me a Savings Square.

1. Get a list of three banks that have the features you want. If all you need is a savings account, this is pretty simple. But if you need wire transfers, free ATMs, stock purchases, and IRAs it, obviously, gets more complicated.

2. CALL each bank two to three times with questions so that you get different people on the phone. This tells you where the customer service is coming from (you don’t want offshore customer service), how friendly the service is (remember, there is going to be a significant issue whenever you call), and their ability to provide the CORRECT answers.

3. If there is a tie in the customer service category, use interest rates and/or fees to decide.

For me, I needed all the services listed above. For that, I really like Charles Schwab. Their offerings are VERY good, customer service is excellent, and your information is always available. Downsides are that their website can be a pain to use and that there is still paperwork that has to be mailed to them for each account you open. If all I was looking for was savings though, I’d probably go with ING.

I’ve used ING since 2004 and still have an account there, but now keep most of my cash in SmartyPig. Both have been very good with customer service, transfers, etc. I would highly recommend either of them. SmartyPig has slightly higher interest rates and I like the interface, but ING is a solid choice, as well.

We bank with Wells Fargo, Etrade, and our local credit union. At some point we would like to leave etrade entirely, but we haven’t gotten around to it. Other than that, our experiences have been ok but not perfect.

FWIW, since the comments are mainly about customer service rather than security (as I said, all most people can say about security is that they haven’t had any money stolen yet)…

I’ve only been doing online banking since November, with Ally.com, but in that time I’ve called them 3 or 4 times and each time I’ve gotten hold of a human in less than a minute and they’ve been knowledgeable, friendly and helpful.

I just opened a checking account with them in addition to the savings account I had originally. I was considering a money market account, but since I can transfer money from savings to checking instantly, and they will automatically (and for no charge) transfer money from my savings to checking to cover overdrafts, and the savings account pays the same interest as the money market, I don’t see the point of a money market account, especially since the money market carries (a small amount of) risk.

It seems to me that keeping the money in the savings account and linking that to a standard checking account pays the same as money market and earns as much interest.

I’ve had an ING account since they launched in the US (so for over 10 years), and have never had a bad experience with them. Their customer service has always been great and they continue to upgrade their security year after year. I also like that it’s an established company that has been around for yeras (much longer in Europe than in the US). They also have a few physical locations in the form of cafes in large cities (but none where I live – I think one on NY, LA, Philly, maybe Chicago). I think I’ve only had to call customer service two or three times in the past ten years, they have everything you need available online. I highly recommend them!

I currently use ING Direct, Ally, Smartypig, Charles Schwab, and PNC (very rarely go to ATM or branch). Each has a slightly different interface. They are all capable and unless you don’t understand something on a particular site, it comes down to which one you like the most.

Blarg! This is one of those mornings when nearly every comment is being routed to spam, and I’m having to rescue each one by hand. Not an issue, except that I’m about to leave for the gym, where I’ll be for the next two hours.

If you don’t see your comment, don’t fret. I’ll de-spam it when I get back from the gym.

USAA hands down. I’ve worked for three banks (two of which include Wells Fargo and Key Bank), and I find USAA’s online to be the most secure and the least annoying at the same time.

For example, I can change my username, which is great. When I set up my online banking with them in 2004, I used a username that I use everywhere on the web. When I realized that was a mistake, I was able to log in and change my username by myself. I wasn’t able to do that with Key.

Also, they ask additional security questions only when it makes sense to me, like if I’ve typed my pw in wrong or if I’m using a different IP address.

With that combination, I get a good interest rate on savings and I don’t need a local bank. Not that I have anything against local banks, but I love the service of USAA and if I move I don’t have to worry about finding a bank.

I’ve been with ING since 2001. My money has earned thousands in interest, it has been easy to move money back and forth between them and my day to day bank, and they’re always great when I call them up (changing the amount going into RRSPs).

I also really like their TFSA quickstart (TFSA is a Canadian program that lets you put in up to $5k after-tax money annually and it grows tax exempt) initiative that they’ve done the last few years. Basically they give you 2x the interest on their savings account a couple of months before the end of the year if you put it into a pre-TFSA, and then on Jan 1 they move all the money into your TFSA. I like being rewarded for doing the smart thing.

I have had the worst experience with online banking this year with Wachovia/Wells Fargo. The merger has created all sorts of problems with understand their system, and my credit card is now Wells Fargo but my debit/checking accounts are still Wachovia. It’s been a mess and I am looking into other banks b/c of it. Maybe once the merger is complete it will be better, but they need some help right now!

I never had a problem with Virtual Bank which we had. Customer service was certainly good, and the Money Market rate at the time was good.

Question,if your finances are good enough normal emergencies and such can be handled easily, should the rest of your emergency fund be something more long term, like in an index fund?

I just never liked the idea of locking 5 Grand or more up for what should be a 1 in 20 event. I understand you need enough to cover a car breakdown, or other fiasco, we just had 3 hit at once, but we managed it well. When you’re at the point that you have enough to cover small emergencies, it seems the big ones like losing your job would be better off sitting in a index fund for 3-10 years or hopefully forever. So maybe you have low yield fund A you tap into as needed, and higher yield fund B that you hopefully never need?

I use SallieMae, and have been very pleased with their customer service when I had some issues setting up my account (nothing wrong with the interface, just needed to clarify some things based on utilities and whatnot to open my account). I will say I’ve never actually tried to get money out of my account, but I certainly have been able to put money in, so I assume it all works. ^_^

I’ve used ING since 2003. It does take 2 days to transfer the money back out, but I really like the convenience of the automatic withdrawal and the competitive interest rates. I have only had to call them once, when I opened up a savings account for my son and entered his SSN incorrectly. I did have to wait 5 minutes on hold, but the person I spoke to was friendly and efficient, and I didn’t have to go through a phone tree to get them.

I signed up for a checking account with them primarily for the bonus they were offering this Black Friday. It’s ok and does what I need it to do. I don’t use it as my primary checking account so I don’t have a whole lot of feedback on it. But their savings accounts are great, and I highly recommend them.

I have an account at ING Direct and have been very happy with it. I use multiple accounts to target savings and have had no problem with accessing my money.

@Brett #5 – You CAN set up a usrname with ING!! Save yourself whatever frustration you can. From their help:

What is a Saver ID and how do I set one up?
A Saver ID is a unique username that you can use in place of your Customer Number when signing into the website.

To create your own easy-to-remember Saver ID:
1.Sign in to ingdirect.com with your Customer Number and PIN.
2.Click on the ‘My Info’ tab.
3.Select the ‘Change’ button in the ‘Saver ID’ section.
4.Enter a Saver ID you can easily remember.

I’ve used USAA since 1996 for banking and brokerage. Their reputation for service and security is unblemished and second to none from my perspective. ING Direct since 2002 for savings and mortgage, again my experience is flawless service and no security issues.

I’ve been with ING since 2005- savings and then checking. I love it. I don’t have any security concerns at all. I also have had a savings with HSBC but it’s not as great to me as ING. Things that may seem like drawbacks but can also be positive would include:
1. No paper checks, you do it from the account and they mail it for you. The perk? They pay the postage, they have direct transfer information for many institutions, and you don’t have to worry about losing your checkbook or having it stolen.
2. Delay in transfering funds to a different account. Transferring from ING savings to ING checking is instant. This is with ANY bank though– online or otherwise. An electronic transfer from one bank to another will always take a few days, expect a week.

My biggest problem with ING is because there is no local cafe for me, I can’t deposit cash into it. Also, you have to mail in your checks which means add a week to normal processing times to be safe.

What I advise my friends and family is this: Use ING for all of your online transactions and bills. I would not use it as your only savings. You need to have something very liquid. So if you’re in the beginning stages of paying down debt, and only have that small emergency fund, I’d put it somewhere much easier to access (in my case, my local credit union). Anything above that, I’d deposit into ING. And once I start building up my emergency, fund, I think I might have 25% in my credit union and 75% inING generating interest.

I’ve had an emergency savings account with ING for about 5 years now and like them very much. I’ve never had any issue but I’ve also never had to use customer service. Withdrawals for emergencies have come through in 2 days as they advertise with no problems; deposits take longer. I also have a credit union savings account (mostly because I have one credit card through the c.u.) and a checking account through a regional “bricks and mortar” bank that waives the regular monthly fee with direct deposit. Currently this meets my needs well.

We’ve used Ally and they have excellent customer service – really – a live person (in the US) 24X7. They also have some of the best rates (such as they are) right now. We’ve also used ING and our local credit union’s online services with no security issues.

I’ve used ING before and that’s the one I like the most.
Currently, I only have account in the local credit union. The interest rate is only 0.75%, but I only have the emergency fund in there so it’s not going to be a huge difference.
I just got a card in the mail promoting another CU opening that will give 2.5% interest. That’s huge and I will probably check it out.

I went with ETrade for one giant reason: free onetime password key fob (RSA SecurID, specifically).

While onetime passwords don’t solve all problems, they do solve a huge portion of them. My computer is no longer trusted, which is exactly how I want it (and what the “call for a code every time you login” folks in another comment are trying to accomplish, just without the right device).

I’ve used USAA for years and years and have always loved it. A year or two ago I wanted to have a more hands-off savings account that I couldn’t access right away, so I opened an ING one. But I couldn’t figure out how to set up a beneficiary (without calling them, at least), and I didn’t like the idea of it being separate from all my other accounts and forgotten about someday, so I closed it. Yesterday I opened a second savings account at USAA which is strictly an emergency fund, as opposed to my older more ‘slush-fundy’ savings account.

I use HSBC online and it only takes 3 business days to get my money. My only problem with this online bank, is that they keep dropping the interest rate. Recent email has it at .90% but it is still better than my .25 or .50 % savings account at a brick and mortar bank here in my town. I use this account primarily to pay my mortgage and christmas fund and emergency money.

For the past year, you’ve been able to establish your own username instead of using the customer number on the ING website. Also, if you register a computer to the website, you won’t have to answer the security questions every single time.

I’ve had ING since May 2008. I love them and have never had a problem with them. I’ve always been able to get to my money within a reasonable length of time.

I also used Everbank for a few months. It took a lot longer for them to allow me to access my money, plus I felt they were not forthcoming or at least clear on their “first year” interest rate. After the first three months, you only get the “first year” interest rate available at that time, not necessarily what you originally signed up for. It’s the main reason I left them.

I have an account with ING and have been very happy with it. Specifically relating to security, it seems like a more secure online environment than my local brick and mortar bank. Specifically they have:

*A custom picture that you choose when you register for access. This displays when you are at the login screen. Presumably, someone trying to make a fraudulent “look alike” site to capture passwords wouldn’t know what your random picture is and would cause a red flag prior to logging in.

*The place where you enter your pin is a representation of buttons that you click on with your mouse rather than type in on a keyboard. I assume that this would work to negate the effect of key logging software that attempts to capture your keystrokes and PIN details.

*If you phone their call center to speak with a representative, they have a mechanism to enter your pin prior to their discussing your account. No PIN, no info. As an aside, the few times I’ve called their call center, I’ve spoken with friendly reps with virtually no wait time.

*If you attempt to log in from a computer that you haven’t used before, it will ask two or more personal questions that you answered when you registered. These questions seem to go much further than your mother’s maiden name. You can ‘register’ frequently used computers to skip this step on a day to day basis if you want.

We use Bank of America’s online banking for bill pay, direct deposit,and ATM. We paid our mortgage online also. No issues there. The interest rates are dismal on everything and we keep money there for monthly expenses along with a small cushion. Loyal to BA because the service at the local branch is outstanding. Looking around though, as we keep less and less money there.
ING for savings accounts for the past year.
Interest rates 5x better than BA with no service issues.

I’m currently using ING, Chase, and Citi. ING and Chase I’ve used for about 6 years.

ING:
– Pretty good interface, although I feel there is a lot of extra clicking around.
– Bill pay is great. They support eBills, so your electric company can send ING how much is owed, and ING automatically schedules the payment. Makes it possible to automate most bills.
– Easy new accounts. Opening a new account is easy and quick, they are available almost instantly. This makes it easy to open multiple savings accounts for smaller goals. When I opened a savings account at Chase online, it has taken 3 weeks, and the account is still not fully functional.
– Security. I think the log in covers a lot of security concerns. An added bonus that I haven’t seen elsewhere is a separate login for services like Mint. So should you ever have concerns, you and cut off external access and know for sure that Mint no longer has access.
– Easy scheduled payments, online checks with postage paid. Makes getting around without checks pretty easy.

Chase:
– Decent website, although very cluttered and sometimes hard to find what your are looking for.
– Bill pay requires lots of clicks
– Killer feature, iPhone check deposit. Take a photo (or scan) a check and it gets deposited. If ING had this it would be a home run.
– Good network of branches

Citi:
– This has been my primary account.
– I like the summary page, which is clean and easy to read, and allows me to see my Citi Credit cards and pay them instantly.
– Bill pay is decent, but does not offer eBills, so not everything can be automated.

In the past year, I switched from everything at a Citibank-At-Work account to this:
*USAA: checking, savings, credit card
*ING: emergency savings
*Citibank-At-Work: cash deposits only (then transfer them to USAA)

USAA has the best customer service I have ever experienced. I have yet to use the Deposit Mobile feature (and you need a line of credit with them to qualify for that), but will try it soon. I still have my Citibank account because I do sometimes have cash to deposit and must do that locally, but Citibank (service-wise) has been so poor and error-prone over the years that I actually consider them a risk to my credit report.

Lastly, one form of security I use for my online banking is to use mnenomic passwords. It makes me feel as if I’ve added just one more layer of security.

I’m Canadian, which means my options are different, but I’ve been with President’s Choice Financial since 1999.

Their service has been excellent, and the ONE time my account was hacked, they red flagged the transaction, and called me immediately. From there we were able to lock down and protect all my accounts. I was more than satisifed with their fraud detection system in that case!

My parents use ING, have been for a few years, and have nothing but good things to say about their experience as well.

I have a savings account with ING. I don’t have alot of money in it – maybe $1,000. I haven’t had any problems with them. I believe it was GRS readers that convinced me to open an account up with ING. I was very nervous to start “internet banking”. I think that is why I only have about $1,000 in the account cause I’m still a little nervous. I guess I’m just “old school”. When I see that I have some extra money after paying my bills, I will easily depost some money into my ING account. It’s fun. I have one account titled “car” and one account titled “riding lawn mower”. :)

ING all the way. Have had them for years and no problems whatsoever. Even just opened up a new checking account with them. I also have an eTrade account that I’m desperately trying to close. DO NOT USE ETRADE. AWFUL. HORRIBLE. TERRIBLE.

I’ve used ING for savings accounts for over 5 years now and never had a problem. I had to call customer service only once (I think when I got married and changed my name?) and it was a shockingly smooth process. I love the ease of automatic transfers, and how you can have multiple accounts earmarked for different uses.

As others have said, it’s hard to really tell from the outside how secure the system is from the outside, but they seem to put top priority on security.

Banks are required now to use something called “two-factor” authentication, whereby if they don’t recognize the computer you’re using, they ask you additional security questions you’ve chosen (Pet’s name, etc.) Typically, they also ask you whether or not the computer you are using is public or private. If you choose private, your computer is “registered” with them so they will recognize it next time and not ask the additional questions.

Some people think that it will be extra secure if they say their personal computer is public and answer the questions every time – but this is much less secure! If your personal computer were to get infected with keystroke-logging malware, then every time you answer those questions is another chance for the bad guys to steal your answers. Whereas, if you had registered your personal computer, and it were to get infected, you wouldn’t be presented with the questions and they couldn’t steal your answers. Then, when they try to log on to your account from their own machines, they will be prompted for the additional questions and won’t have the answers.

There isn’t a whole lot you can to do affect your bank’s security, but that is one thin you can do to keep your own online account secure.

Several years ago, I used the comparison tool at bankrate to select a savings account with the highest interest rate and least restrictions. That led me to Dollar Savings Direct. I have had a good experience with them without any problems transferring money in or out to my local bank. Although they have a lower star rating than other banks on bankrate, my money is still FDIC insured, so I am not terribly concerned. I can recommend them.

One more thing to consider when comparing banks, how often is the interest compounded? Is it daily or monthly? Daily compounding will give you more of a return. Is this figured into the APR?

I have used ING as my online bank since about 2003, and I absolutely love it. Yes, the 1-2 day delay to process inter-institutional transfers worried me at first (if I needed money quickly, how quickly would I be able to get it?), those fears quickly went away when I realized how user-friendly and consistent the site – and phone customer service – is.

Plus, the reason I was setting up the account in the first place was to SAVE. So while the thought of not having instant access to my money was, at first, a little scary, my online savings account ended up doing exactly what a savings account (online or not) is supposed to do: keep you saving without giving you easy access (and excuses) to the cookie jar.

If I do need to access my money, I just know that I need to plan a few days ahead (again, a good habit I’ve gotten into) to ensure that I leave a couple days for the money to transfer to my brick and mortar bank for withdrawal.

USAA! Free checking, free ATM withdrawals from any bank’s ATM, and they reimburse you for the fee charged by the other bank, an iPhone app to deposit checks by taking a picture of them, and great, live, human being, customer service 24-7. Best. Bank. Ever.

I’ve used ING savings for a little over 4 years now and have not had any problems. I think I only had to call them once, and I remember the rep being very pleasant. I like that I can name my accounts whatever I want (‘home improvement fund’ is easier to recognize than 021458544) and have multiple accounts under the same login.

My only suggestion to them has been to add a Memo line to transactions so that I can remind myself of the purpose of my transfers. Since I transfer to my checking account, I do write that info in my check register, but that means cross-referencing when I’m reviewing my finances at the end of the year.

@Brett (#5) – Someone else answered your question about the numeric login. To stop the security questions from showing up every time you log in, check the Register this Computer box, and you should not have to answer them again.

I opened an HSBC online savings account in 2008 and have had NO problems.

My only complaint has been the continually dropping interest rate, but at last check, it was still one of the top few I could find. I don’t think that has so much to do with the bank, it’s service or security as with the economy.

Another big fan of ING Direct. When you call, you get a real live helpful person, immediately. I’ve never been put on hold, or had to enter my social and phone number and numerous “Dial 1 for this” crap. Its straight to a person, which is actually quite shocking the first time!

Plus the interface online is really easy to use, with helpful videos for the technologically challenged.

Adding a vote for ING Direct. I’ve been using them for a few years with no problems. Their website is extremely easy to use and I recently called customer service with a question and got through immediately.

I briefly used Ally, but stopped after 2-3 months because their website didn’t work well enough for me.

I’ve been extremely happy with ING Direct. The only hiccup was an annoying and slow setup process. Now I use ING Direct for most of my liquid savings needs — sort of “out of sight out of mind” money that I can still access within 2 business days if need be.

I agree with many readers–USAA is definitely the best bank I’ve ever banked with, by far. The customer service is what stands out, particularly for someone like me who moves around A LOT. They are always willing to help and do what they can for you. I also use ING for my emergency savings so it’s a little less accessible than my USAA savings. But USAA is THE BEST.

We use Schwab for checking and have been very pleased with them. They refund ATM fees, give free checks, have postage paid envelopes for deposit, pay a bit of interest, and really great billpay. They also have really amazing customer service, and you can link an investment account to your checking. (We don’t use it, but it makes the checking account free.)

For savings we use ING Direct, and have been pleased. We originally had checking and savings with NetBank until ING bought them, and did not like ING’s checking account, which is why we moved over to Schwab.

Being a computer tech I was an early adopter of online banking. Coming from a small town it was almost unthinkable for me to “abandon” our local branch that my family had used for three generations. When the bank couldnt provide basic online services I left for US Bank. I was never happy with the service or fees. Eventually I switched to a new local credit union that had wonderful service. Again I was not happy due to the lack of online services. As I began to educate myself on finance I realized I wanted to setup “Envelope” saving to reach savings goals. I read J.D.’s article about ING Direct savings accounts.

In short to ansewer the question I use ING Direct for checking and savings. I couldn’t be more happy. I love the abundance of online tools to manage my money. I now save more agressively then I ever thought possible. I have a dozen different savings accounts that range from taxes to college savings goals. The ability to add a new savings account (envelope) in minutes is amazing! In the past I would have never saved small increments like I do now. I would toss all my funds into a single savings account and use mental accounting to try to keep track of funds for different purposes. This didnt work well at all. Many small auto withdrawls from checking into savings have worked great for me.

I’ve used First Internet Bank of Indiana for about 8 years, including during 3 extended periods when we were traveling out of country. Have been extremely pleased with service and security. Once, when we had a break-in at work, First IB seamlessly gave me a new checking account, very quick, very responsive. Another time, when I accidentally let my checking account bottom out, FIB made a replenishment from savings, no problem, without asking. Kudos!

It’s funny to read comments such as, “ING, ING, ING. … I would definitely say it is better than the service I have received at national B&M bank where my checking account is.”, as if ING is some fresh new little consumer-minded friendly start-up. Actually ING is a trillion dollar multinational conglomerate with B&M locations pretty much all over the planet .. everywhere except the states where they are online only.

I use ING Direct since 2004 and PC Financial since 2008 (both in Canada).

I have never had any problems with either, but I’ve never had to do anything beyond the basics with my accounts (paying bills, transferring between accounts and between banks, direct deposit, etc.), and in general, I’m not the sort of person that calls customer service.

I keep my emergency fund at ING, and the money goes in automatically. I consider the 2 day wait time to access any money to be a plus, especially when I first started building the e-fund and needed the extra discipline not to dip into it for wants.
I really like the automatic savings plans you can set up, and I like how you can set goals and it will show you a graph and a % to see how close you are getting to your goal.

The PC Financial interface is rather archaic looking, but it gets the job done. ING Direct is more visually friendly/interesting.

I don’t know if PC Financial has a BlackBerry App or not, but ING’s BlackBerry App really sucks. It’s essentially a link to their website which then opens in the device browser. Not really an App at all in my opinion, just a fancy way to show you a link. I hear their iPhone App is a proper App, though.

I also recently got into the ING Direct THRiVE chequing account trial in Canada (I think it’s the Canadian equivalent to the US Orange chequing account), and I plan on switching to it for most of my normal daily chequing account needs.

I’ve had savings accounts with ING, etrade, and Discover (when etrade sold all their savings accounts to Discover).

I love ING, their customer service is great. You don’t have to use their 7 digit number, and can create your own ID on their website. I like the fact that they force you to use your pin when you talk on the phone with them, because that means more security to me. I love how I can open sub accounts for different savings goals.

Etrade was fine, and Discover’s customer service was excellent as well. I still like the interface for ING more.

I will put in another vote for Ally’s customer service. You are always able to reach a live person over the phone and you can also do an online live chat with a real person if calling on the phone is not your thing.

The comment from #57 about why to register your personal computer is helpful–I had always used the opposite reasoning, but what you say makes sense.

I do like the convenience of my ING account, but I have stopped using “subaccounts” because there is no quick way to assign a beneficiary for them. (If someone has figured out how, please tell us all.)

I have made my main savings there a joint account, but setting that up takes a little time and effort. I don’t want to go through the process every time I create a subaccount (it’s actually a separate account!), so I closed out the “car fund” and “vacation fund” and so forth and just keep it all in one place.

If I could just designate a beneficiary for all the small accounts, I would go back to having them. Otherwise, what happens to my money in the event?

Been at HSBC for longer than most of you have probably been alive and have used their online banking since they rolled it out, quite a few years now. Never had a problem with them, the interface is easy, your money’s available quickly and I think I remember them getting kudos for their online banking. Their savings rate sucks, but that wasn’t what the question was. ING since 2004 and all I do is transfer money and gaze at my riches there so although you have to wait for transfers and holding money, etc., I’m only there for the interest rate, (not great but better than HSBC, not as good as SmartyPig). SmartyPig just recently for their interest rate. Find their interface childish and annoying and complicated, but again only there for the interest rate so I’ll cope.

I’ve used ING for the last several years and have had no problems with either the customer service or their security (or their interest rates, either). They make it easy to deposit, and more difficult (as it should be if you’re trying to save) to withdraw.

I once forgot my password, and there were several hoops to jump through to get a new password issued so I could access my account. While a little frustrating at the time, I realized it was for my own protection. I’d rather my money be safe than easily acessed by the wrong people.

I have a slightly negative perspective on Ally Bank. I was with ING for many years but switched to Ally last year because of the slightly higher interest rate and the fact the interface seemed a little neater.

A lot about Ally bank is the same as ING in terms of options and interfaces, but last fall I noticed that a few of my accounts were showing the wrong balances even after taking into account pending transfers. I called them to see what was up, and after multiple attempts at e-mail and calls, I learned that their IT system had undergone a major upgrade that had run into some problems and delays. Recurring automatic transfers were deleted without the customer knowing or requesting it. For a period of about two weeks, I couldn’t make heads or tails of my balances, whether I needed to recreate my automatic transfers, and whether I had all my money where it should be.

I understand that system upgrades happen, but Ally didn’t send a single e-mail to its customers mentioning the problems and when solutions would be in place. Not one. That’s unacceptable service, in my book. I sent them a customer complaint letter and never heard anything back.

Now I’m back at ING and don’t have any problems. I’ve also noticed that opening joint accounts with my fiance at ING is a snap – great for shared savings goals like the wedding fund.

I’ve used ING for a couple of years now for savings and emergency fund. I have automatic transfers made from my B&M bank account, and I also have ING checking with a debit card, which gives me quick access to my emergency funds should I need it. ING has been the easiest and most irritation-free bank I’ve ever dealt with, period.

I use both Ally for their online savings account and Bank of America’s online banking services. Ally has been great so far, though I admittedly have only had about half a dozen transactions with them.

Bank of America offers me free services since they hold my mortgage. I take advantage of their online banking but someone at BofA really ought to take a look at their user interface. You can’t make large payments with their payments section, it has to be done under transfers. This is listed nowhere on the site and it took three different customer service reps before I found someone who knew about this flaw in design.

I’ve had HSBC for over five years (they USED to have amazing rates, back when times were high) and I find they’re almost a little too secure. You have to have some crazy pin number to talk to them on the phone. I’m sure I have it somewhere, but I usually stick with their secure bankmail feature, which has always been sufficient. Logging in requires two passwords, a regular one and one you enter with your mouse on a “virtual keyboard.”

Customer service is pretty good, too. They changed the way they do the bill pay, which resulted in a NSF charge. I sent them an email and explained the problem and they gave me a one-time credit. Granted, that was before all the legislation that cut their fees, so I don’t know if they would do it now, but overall I’ve been really satisfied.

Agree USAA a great choice for all the reasons folks have mentioned above, especially their courteous and helpful customer service reps. They have also introduced an optional feature that allows you to easily categorize transactions by budget category and track expenditures. I really like this new feature so far. Thanks for the tips on other top-performing online banks!

Like others, I use and love USAA. But they do have special membership. However, if you can join, you should. Transfers are fast and easy, security is great, and customer service is quick. However, their interest rates aren’t that high. For that reason, I keep all our savings at Ally bank. I like their service and security and customer service. Transfers take a few days though. I would say, for the question asked, ING or Ally would be best.

I will attest to ING having the most infuriating login process on any website, financial or otherwise, that I’ve ever used.

I understand the security reasons behind it (and find them dubious), but their insistence on using that stupid little pin pad thing is 1) more error prone (it’s easier to mis-click than mis-type), slower, prevents you from using more secure passwords, and most of all *doesn’t work with password manager software* so every time I want to log in, I have to open my password manager by hand, look up ING, and then click something like “edit” > “view” and then I have to read the number out of one box and click it onto the stupid pin pad.

On every other site, once I save my password, I can just type my master password and it will fill out the form on the website with the appropriate username and password. This is equally keylogger resistant since I never actually type the password for any of these sites, and the master password is only useful if you’ve got my personal laptop where the password database is stored.

I’ve been with ING for six years and LOVE it. I’ve never had a problem with them and their customer service is fantastic.

I opened an online account with HSBC a few months ago so I’d 1) reduce my transaction fees when traveling internationally and 2) have a place to put my emergency fund once I’ve built it up in SmartyPig (I don’t trust myself to keep it in ING and not shave away at it when a big purchase comes up). I’ve found their user interface to be much more cumbersome than ING’s and their customer service was harder to deal with – the few times I’ve called ING with a question, I get a (good) answer immediately; when I had to call HSBC to get my password reset, it took 20 minutes to get through the process. I wouldn’t use them as my primary online bank.

Another +100 for ING. I’ve been with them since 2004. Originally I just had a savings account but now I use them for absolutely everything: targeted savings, CDs, checking, bill pay. My paycheck gets direct deposited into my Electric Orange account, and I have automatic monthly transfers to emergency and various short-term savings accounts. My mortgage, Roth IRA, and student loan payments are automatically withdrawn. I can enter bills to pay on any date I like, and pending items show up whenever I look at my checking account, so I won’t forget about them. I can make payments directly into someone’s checking account, or I can mail a check anywhere. Their help menu is great, email response is great, and I don’t think I’ve ever had to call customer service. I have a small local bank for paper check deposits, but that’s all I need. Lag time between ING and the local bank can be annoying, but really if you can plan more than a day ahead you’re fine. The hold on money transferred into savings is a week, but transferred into checking is only one day, and transfers between savings and checking within ING are instantaneous.
I don’t plan to switch anytime.

(Disclaimer: I’m a UK customer, but I know there are other UK readers, so this might still be useful)
I’ve used ING in the past and had no major difficulties – moved because the interest rate was better elsewhere, back when that made a difference…
I currently have online-only accounts with 2 “high street” entities: Northern Rock and Yorkshire Building Society with no gripes about either. I also have multiple accounts with the Co-operative bank, which have online banking, and am exceedingly happy with them, particularly their customer service. As far as I can tell, their online-only arm, Smile, use identical systems and the same UK call centre, so should be equally good. I don’t have personal experience of them but have heard only good things from those who do.
As an aside, I’d love to know what the Co-op feed their call centre staff – they are uniformly cheerful and competent, which is a pleasant change these days! (And yes, I have repeatedly sent in comments to this effect – I want them to have an incentive to carry on doing whatever it is they’re doing)

I use FNBO Direct online banking. I set up my first account with them about two years ago. I was building my emergency fund and they had the best interest rate at the time. (Their rate has dropped, but it is still better than ING’s rate.) I now have several targeted savings accounts with them and their Bill Pay account, which also earns the same interest rate as their online savings accounts. Most of my paycheck gets deposited in my FNBO Bill Pay acccount, in fact, and I just transfer funds from there to my targeted accounts.

I had used the online bill pay interface from my previous B&M bank for years, but FNBO was my first experience with an Internet-only bank. I had to call customer service several times in the beginning as I was getting the hang of things, and they were always very helpful.

I think it’s still essential to have a B&M account in some cases, such as if you think you’ll want to make deposits of cash. While I have mailed checks to FNBO, I would never mail cash. Once I started renting out rooms in my home, I would occasionally get paid in cash and this became an issue for me.

So I now have a checking account at a bank that has branches in a local grocery store chain. I don’t earn interest on this account, but I got a total of $150 in cash incentives when I opened the account, so that makes up for a few years of low interest, I think. I just keep minimal money in there and do periodic transfers to my interest-bearing FNBO accounts when the balance is getting above a certain threshold.

Agreeing with others- ING and USAA are stellar. I’ve always been able to quickly connect with humans via phone when needed.

My only issue (which is probably a good thing) is that I have to frequently re-update my USAA accounts on mint.com. I’ve heard that it’s because USAA’s on-line security is so tight, so I’m really not complaining…

I’ve used USAA for about 10 years and I love them. Granted, I don’t have much to compare them to as far as other banks go, but:

-Customer service is excellent. I’ve never talked to anyone less than knowledgeable, helpful, and polite.

-Website is set up well and works well.

-I can use any ATM anywhere, and they reimburse me for the fees.

-I don’t pay any fees for checking or anything.

-Transfers between accounts are easy and immediate.

-They offer lots of services I don’t want to use, but they don’t harass me about them.

-Security seems good so far as I can tell, but really, what can I tell? They do all the normal stuff: log-in, shut you down if you put in the wrong pin too many times, log you out after inactivity… And I’ve never had any problems.

For two years, I’ve utilized a combination of Charles Schwab High-Yield Investor Checking and ING Direct Savings.

My Schwab checking account earns interest (was 0.75% when I started, now it’s 0.25%), automatically covers any ATM fees, and their service has blown me away. I received a call soon after my account was setup by an account concierge offering me help getting up and running, setting up transfers, investing, or anything else I might need. That surprised me and set the tone for every interaction I’ve had. I’ve called Schwab on the weekend and close to midnight. Every time, the person on the other end is exceptionally friendly and helpful. I’ve never enjoyed service of this quality so consistently from any business I’ve dealt with. All issues I’ve experienced have been my fault. Also, their debit card does not have an RFID tag in it – that’s a plus in my book.

ING Direct is solid. Their security features can be a bit annoying at first, as it seems like overkill, but that’s the point. The account is accessible, including from their iPhone app, and it’s easy to transfer. Their rates are good. I’ve never had cause to contact them for service, everything just works.

I have used the HSBC online savings account for 2.5 years and have no issues. Just sad everytime I get an email that the interest rate is going down, but it’s still competitivat at 0.9%. Been able to transfer money in and out and was able to easily create more accounts so that I can target saving up for car insurance and such. When I had a question, customer service was able to quickly respond as well.

I use Charles Schwab High-Yield checking account and a brokerage account, and Sallie Mae for savings. I can’t say enough good things about the Schwab account. They called shortly after I set up the account to ask if I had any questions, and I haven’t had any problems so far. Being able to use any ATM, anywhere, has been the best feature for me. Transfers and bill payment are much quicker than with my old Bank of America account.

Let me add my voice to those who’ve recommended USAA. Savings account rates aren’t great, admittedly — currently 0.30% to 0.55% APY depending on balance and inital deposit — but the customer service is top-notch. We’ve had our various insurance policies and most of our finances with them since I was in college, and my parents have had insurance with them for as long as I can remember.

Love the ability to deposit checks from a PC/smartphone, or mail them in. The inability to do a cash deposit occasionally annoys us, but I’ve heard they’re working on a way to make that possible as well….

I use Ally, Capital One, and Smarty Pig and like them all. I’ve used Everbank, but took my $ out because they changed their terms mid-CD.

Not online savings, but I need to rant. One of my mortgages is with Bank of America, and I simply hate their online site. You cannot just go in and pay more on principal–you have to send them a check. WTF? I also have to call them when I want to change the payment amount (adding additional principal monthly) because their website is so clunky that I cannot find what I need easily. Luckily, their customer service is good on the phone. Every other mortgage I’ve had, I could just go in and transfer $ from my checking to the mortgage to pay additional principal when I got extra money, but not BofA. I really wish my mortgage co. would have sold my mortgage to Wells Fargo or U.S. Bank.

You know, JD, this would be a GREAT post to put a poll on. One with a top 10 or something like that. It wouldn’t capture all of the banks, but it would capture the most common ones (and you could put an other category). The poll might be slightly skewed if it’s mostly US banks, though.

As far as a favorite online bank goes, ING. With a savings and a checking account, in an emergency you can just transfer the money from checking to savings and have it instantly. I also like the multiple account options (slush fund, e-fund, car fund, etc.). I just have to make sure to keep the check card out of my wallet so I don’t use it all the time.

My husband and I have been using Westfield Bank’s (westfield-bank.com) Dream Big Checking account for about 4 months now. I have to say, it’s incredibly awesome. It’s a 3.5% interest rate up to $25,000. We keep our emergency fund AND our checking in there, so we’re maxing it out (we generally have around $27K in there).

To get the interest rate, there are 3 requirements:
1. get statements online
2. have one direct deposit or ACH transfer per month
3. make 12 debit transactions per month

All those things we do anyway. There are no fees for anything we do, and ATM fees are reimbursed up to $12/month. The only thing that’s not the best is that it’s out of state… we send in deposits through the mail, but this isn’t a big deal. We keep a local Wells Fargo with a couple hundred bucks for doing cash deposits. We decided to switch when Wachovia turned into Wells Fargo and started screwing things up for us.

Anyway, I would HIGHLY recommend this account, if you’re looking for a checking/savings solution.

I’ve used Emmigrant Direct for the past 5 or so years. Back when interest rates were going up they tried to keep their rates slightly above ING. I think they still are but both are pretty low anyway. It takes about a week to get money out right after you transfer it in but only about 2 days if the miney’s just been sitting there. I still have a local bank so I’ve never deposited a paper check. We’ve never really had any issues with them. Our money mainly just sits there and we occasionally transfer some in & out (mostly just money for taxes since I’m a 1099 employee and don’t have any tax withheld from my paychecks).

I used ING but cancelled b/c interest rate dropped too low.
I now use First Arkansas Bank & Trust. There are some hoops to jump through (minimum number of cash card uses, auto deposit, etc.), but worth it for the interest rate.
And I think the service at First Arkansas Bank & Trust is great. I can call with questions (allowing for Arkansas time difference) and always get directly connected to a competent person with a loverly Southern drawl. Also, last year the Bank sent me a $25 Visa gift card because of any inconvenience their transition to a new computer system may have caused me. It didn’t cause me any inconvenience.
I feel my funds are very secure; I get personal phone help when needed; I get a good interest rate; I got $25 dollars from the Bank because they might have inconvenienced me? What bank does that?
First Arkansas Bank & Trust. I highly recommend them.
Alisa

Myself and my fiance bank exclusively with USAA and ING. I am in love with ING, the multiple savings accounts, the incredibly easy interface, the no fees (even if you accidently try to overdraw an account), the line of credit on the checking account, everything. I really feel like they care about their customers, they have a great aesthetic and personality. And most importantly to me, when you call, a real live person answers the phone immediately. Not after pushing 0 a million times, not even after you’ve entered your account information, immediately. I called to find an ATM expecting to work through a computerized menu and actually felt a little bad when I got a live person immediately for inconveniencing her (but she was very nice and gave me walking directions to the nearest ATM). Another pro is use of the AllPoint network of ATMs.

USAA I don’t have quite as much of a love affair with, but it is also a solid bank. They offer rewards checking, which is nice, but mostly I use them for the ability to scan checks to deposit them, eliminating the need for a local branch. I can’t wait for ING to get this feature, I have to imagine it must be coming. Also nice about them is that all ATMs are free and they refund up to $15 a month in other banks’ fees.

Both of these companies have excellent, friendly customer service available at seemingly all hours. I realize you USAA isn’t open to everyone, but USAA + ING is excellent and means no brick and mortar bank for me.

I used to use Countrywide Bank (associated with the mortgage lender) until Countrywide was bought by Bank of America, and BOA ruined a great online-only savings product by adding all sorts of fees and restrictions.

Since then, I’ve had an account with Discover Bank (associated with Discover Credit Cards). Rates are decent, the website is easy to use, and I’ve had no problems with customer service. One nice feature is that you can get a live person on the phone at all hours, as opposed to many banks that only have live customer service during business hours.

I bank with a regional bank (BB&T) for my checking account, ATM, and online bill payment needs and have a modest savings account with them as well. But almost all my savings is at ING Direct. Never any problems–and I’ve never had such an urgent need for large sums of money that I couldn’t wait the three days it took to transfer money. I also have a Sharebuilder account as well that is linked to my account and it’s very easy to transfer money between the two.

USAA checking. ATM fee refunds up to $15 a month means never having to think about using any ATM. Free checks with postage-paid deposit envelopes. No fees. No minimum. Free online bill payment. Fantastic.

PerkStreet checking. Lets me make cash deposits via Moneygram at Walmart for free every day of the week up to 9 pm! No other online bank I know provides customers a way to make cash deposits. Rewards on debit card use. Free checks with postage-paid deposit envelopes. Free online bill payment. No minimum. No fees.

FNBO savings. 1.1% rate. Gave me my first “real” credit card when my own local bank of eight years sent me a form letter of denial. FNBO trusted me so they earned my loyalty. No minimum or fees.

Been using ING Direct since 2004 with no issues. I have the ability to easily transfer funds with my Bank of America checking account, which I use for Bill Paying, and my Schwab investment accounts. I too use multiple accounts at ING for targeted savings and CD’s.

Don’t ding ING’s rep on being forced to answer security questions during login. If you cannot successfully “register” your computer, this is more often a browser issue on your home PC. Don’t know for certain, but I believe it is related to the browser add-ons you have elected to use.

I have a local CU that I do most of my ‘in person’ banking at, but they added the deposit checks online feature (not that I get a lot of checks) but it is nice!
I have ING Direct and Organge Checking, been with them for 4 years. I have a set amount pulled by ING for my monthly bills, used to be everything that I used bill pay for but I am trying ALLY and have moved a little over there. ING is now set up for all my mortgage payments.
Pro’s: love their computer interface, easy to use, intuitive, etc. Like the multiple savings accounts for different goals.
Con’s: Takes 5+ days to get savings available to use, checking is 2 days. So I have eveything sent to checking then moved to savings. Slow on withdrawls. Played their bill pay contest and didn’t win anything :(

I have started looking at ALLY due to their barely higer interest rate on bill pay, but have found a few issues/glitches.
When I set up a bill to be paid, sometimes it shows up in the calander and sometimes it doesn’t, too glitchy.
Auto transfers don’t show up as pending like ING’s.
When I look at ING I like how it shows pending transfers/bills to be paid/etc for the next few weeks. Ally needs to incorporate that.
Ally seems to hold onto deposits for an extra day.

Tried IGOBanking, but their system not only sucked, but they charged me a fee for a stupid error that they wouldn’t credit, so I closed the account.

As every other member here that has ING we can earn $10 to refer and have people sign up/deposit into ING. If anyone wants to join email me at ronrph2000ATgmailDOTcom and I’ll send you a link ;)

I have had only good experiences with USAA for regular banking (and insurance). Card-carrying member of their fan club.
For high-yield savings, I’ve had good experiences with both HSBC and AMEX. I switched to AMEX only because they have one of the best interest rates currently.
As someone who works on information-security software, I’ve found both to be good. I tend to not log into the latter regularly since I used direct-deposit, so I tend to forget my password now and again. The customer service is very helpful, but they have a good set of protocols to ensure access to your account is protected. Which is something you definitely want if you are not keeping a regular eye on things.
Their web interfaces are not necessarily as pretty as others, but they provide everything you need and it all works very well. Account transfers, changing account information, etc.

I love ING! I have had them since 2005 – super easy to use, set up and transfer money around. Instant transfers to the Orange Checking account and to my Sharebuilder account! I get an email to my smart phone everytime I use my debit card – so it is easy to see if their is unauthorized use. The online banking is easy to use and I can send a paper check from my computer if I need to send my niece money for a birthday or pay the dog walker – all without paying for a stamp! Also – to one of commenters who said they can have a user name – you can – go into account settings and set one up! You shouldn’t have to log in seprately each time and answer security question – unless you are on a computer you have never used before?? I can’t recommend them enough!! I do still have my BofA account – but mostly because I have been too lazy to change my direct deposit with work – but it is on my list. I also have an online savings account with HSBC -it’s ok – more cumbersome login process – but my city(Seattle) has a branch!

Both my husband and I have savings, checking, and CD’S with Ally bank. We love Ally. They’re available 24 hours a day 7 days a week. Their Customer Service is fantastic and their interes rates are very competitive.

I vote for Ally. I’ve used their chat, email, and phone support. The experience has been great. I had a little trouble with an international wire, but that turned out to be an issue on the sender’s end, not mine or Ally’s. I’ve found myself contacting them more than I would normally just because it’s so easy to get answers from their team.

I’ve also used E*Trade and Century Bank Direct. E*Trade has OK support, not great. CBD has great support, but mediocre features.

I have online accounts with both ING and HSBC, and have for over 5 years. I think I’ve had ING for over 10. I’ve never had security problems with either.

I have had issues with HSBC’s interface a couple times–among other things, you have a (very long) random string of numbers for both a login and a password. So I have to keep them written out full form somewhere (and if its electronic…that sounds unwise; handwritten…obnoxious to type all those numbers). So that annoys me. I’ve also found HSBC to be less user-friendly, and had access problems three times several years ago. But I’ve never heard much about security problems.

USAA: checking, savings (currently changing over from BOA, who seem to be getting fee-hungry).

Their customer service rocks. Great website with all the standard online banking stuff, as well as scan & deposit feature. They also provide a nice iphone app that locates ATMs and that allows deposit using the camera! I’ve used both deposit methods. They work well.

I’ve had Wells Fargo (previously Norwest, and I’m a former employee). I like having several branches close by, so easy to use. I have checking and savings, but if fees start to climb more I may need to reconsider.

Also have had an ING for savings for a few years. Seems fine except for low rates.

I’m one of the lucky USAA insurance coverage folks, as my father is retired military. Had them for over 30 years now, and they have the best customer service, bar none. Will never change to anything else, and maybe need to look at more banking services. We get some nice discounts for having multiple products.

ING tops my list. Easy, simple, no nonsense, no spam, and the multiple savings account option is so nice for targeted savings accounts.

I loved WaMu, had been with them for eons, and was so ticked off when they derailed. I’m now with Chase, though I’m not loving them. I’ve only kept them because I have so many automated accounts and deposits that changing banks would be a total pain. I only use them for checking/debit.

If you are eligible, you will not do better than USAA. This company is the most service oriented, friendly, efficient and forward thinking financial services company I’ve ever worked with. Some of their products are pricier than other companies, but the service more than makes up for the disparity.

I’ve used ING for years (a savings account, TSFA, and mutual funds), and its been good to me. I haven’t had to do much out of the ordinary though, so I haven’t put their customer service to the test much. I have never had a problem with them, and I don’t think I have had to phone them since my original account activation.

E*Trade without a doubt because of there security token. You must request it for a fee of….I think it was $25, for this battery powered device about the size of a key. A security number on it changes abour every minute. You must enter this number in additon to your user# and password when logging in to your account.

I have tried just about all of them. Two that stand out have been Ally and Clearsky. I like them for different reasons. Ally has a well thought out Site, customer service is good and located in this Country, transferring money is real easy, it has a variety of innovative products, the interest rates might not be the very best, but they are always competitive and above average, it only charges two months interest for canceling a CD (this comes in handy for those five year CDs that have double the interest rate of the one year CDS), and when you renew a CD you get a quarter point bonus over the then prevailing rate.

I like Clearsky (and I don’t know if it still does this), but I opened up several accounts with it. After opening each account I was sent a free iTunes gift card of fifteen dollars for each account. What I liked about that was Clearsky just did that as a simple thank you. It was not part of a promotion, and it wasn’t mentioned anywhere on it’s website. The rates aren’t quite as competitive as Ally’s rates, but the customer service also is very good and again located in this Country. The website, however, could use a little work. It obviously farms the Site out to somebody else and isn’t spending big bucks. Clearsky also has an interesting newsletter and financial information on its Site.

I will also chime in on Bank of America. Besides being one of the big banks largely responsible for the whole housing mess and economic downturn that followed, it really stinks. It used to change polices on its credit cards like every month. For instance, changing the payment due date. You’d get hit with a fee, and the Bank wouldn’t waive the fee even though you never previously missed a payment because you had automatic payment set up. It also would regularly up its interest rates. My mortgage is through it. The website interface changes constantly. It doesn’t work often. The amount it tells you to pay is different online sometimes then at a physical bank location. I’d keep cash under the pillow first before going back there. Unfortunately, it is my mortgage company so I have to deal with it somewhat.

Clearsky does the whole security token thing. It sent me one without me asking, so I suppose it does it for everybody free. That beats twenty five dollars. Truthfully though, I actually put that in the negative column as it seems like extra work. What am I missing?

Two of my 3 main bank accounts are with online banks: USAA (my main checking account) and ING (my main savings). Both have been excellent and I can highly recommend them.

I do also have a checking account with a local credit union, which I primarily use for bill paying. Having a “brick and mortar” option is also good for those few occasions when I need to deposit either cash or a paper check.

I had an account with ING direct. I verified my identify and linked it to my banking account with no problems. I easily transferred my money to this emergency account.

When I tried to add my mother as a co-account holder (so if anything happened to me, she could get to my money to pay bills, etc) a problem arose. My mother is not so tech saavy and ING initially didn’t actually send her the password in the mail. Several times she went through the on-line verification process with their person on-line but it kept failing. She either had an old password or could provide the accurate deposit amounts (partly because they kept telling her it was put by them into her account. but really it was put into my account.

I would call and try to escalate to a manager and they would resist or refuse. I tried to cancel putting her on the account and they refused. I tried having them transfer my money to to the account it came out of and close the account, but they refused. I tried sitting with her to go through the verification process, but it never worked.

Without being able to go into a place where we could verify some other method than the small transfer method, we got no where. I was even locked out of moving money from teh account during this process. It took 9 months to resolve. I finally filed a complaint with the oversight government agency. Then I got a call tellign me all I had to do was request the money be moved back to the account it was originally transferred out of and ask for the account to be closed. I pointed out that I was explicitly told I couldn’t. They said their service person must have misunderstood me.

I was appalled at the customer service and that they never owned up to mishandling the verification. I closed my account and have on-line accounts only with my credit union now.

Unless, everyone in the family is extremely tech saavy, there is a benefit to having an in-person option.

I have only used two online banks – HSBC and Ally – so I dont have a large sample size to draw from :) However I have been very pleased with Ally and their customer service. The few times I have needed to get someone on the phone I have been able to quickly.

I also like how they have a timer on their website showing you how long the call wait is before you call.

I also find their user interface to be easy and intuitive. While they dont offer sub accounts, it is easy to set up multiple accounts for different savings goals.

My wife and I have three accounts with Ally – Emergency Fund, Car Savings Fund, and our Travel Account.

#77 friend – Inability to name a beneficiary sounds frustrating. But your question “what happens to my money if I die”: this is why you need a will! Naming a beneficiary may avoid probate, but you should have a will so that you can designate the disposition of your assets.

On the topic of security: your online security is often tied to the strength of your passwords. I recommend a password manager (e.g. “keepassx”) that encrypts all of your usernames and passwords and helps you log in to websites after you enter the master password for the manager. That way you only have to remember one good password instead of dozens, and all of your other passwords can be randomly generated and as long as the website allows — like “b[qGQ[1jy69|ealUkhk+”.

On the topic of service: I’ve had accounts at a number of different banks, and I’ve used a handful of online banking interfaces over the years. I’ve had some truly bad experiences with customer service both in person and on the phone. The two worst were at Bank of America and Citizens Bank (New England area) — stay away from these, I’ve heard awful first-person stories beyond just my own. Currently using ING, a local bank, TD Bank, and a local CU.

Someone previously mentioned “testing” the call centers, 2-3 times each. This is a good idea. Especially try calling during busy hours and late in the evening.

Where you can, you should also try test-driving the website. I haven’t been shopping for a new bank, but I’d hope that some of these website have demo versions where you can test out making deposits, withdrawals, and paying bills. If the demo is hard to use, the real thing will be too!

Local bank:

* The online security is clearly sub-par, for a couple of different reasons that become obvious when you use the service. The only reason I stay there is because the branches are nearby when I need to make a deposit, the in-person service is good, and inertia. If I didn’t need a specific feature from the online interface, I’d shut it down. If they had competition nearby that met my specific needs, I’d switch.
* The website is ugly and hard to navigate.
* Interest rates are low.

ING:

* I’ve had savings there for over 6 years. At one point we also had a mortgage with them.
* I’ve also got a “snail mail” account with them in a child’s name — this one does not have online access.
* I’ve had automatic savings pulling money into the savings account for years, this is a nice feature.
* I’ve had direct deposit pushing money into the account.
* Account opening and setup is no more a hassle there than it is with any other account opening I’ve done.
* A human picks up quickly (American English speaking). Others have mentioned the PIN-entry feature when you call in, this seems to add an extra layer. There have been multiple times when I’ve had to call (moving/change of address, questions about things, and setting up the mortgage).
* The PIN pad gadget on the login screen is probably not any more secure than the 20 character randomly generated password I would be using with my password manager. But once you get used to it (i.e. after a couple of logins), the PIN pad is not so bad.
* Someone mentioned the special-access feature you can enable to work with Mint. This is a nice addition for a bit of extra security.
* Someone mentioned the six withdrawal per month limit. This is a federal regulation for every savings account at every bank.
* Several people have mentioned the 2/3 day time required to move money from ING into their account. This is the speed of the banking system — I make ACH transfers between banks and this also takes 2-3 days. (It beats running to one bank to get cash or a cashier’s check and then the other bank to make a deposit!) You should have plenty of cash (i.e. hard currency) on hand for emergencies so that you can wait the couple of days for a transfer if needed.

I’m not online at TD Bank, and I’ve only been with them for about a year, but service at the branches has been very helpful. A couple of friends recommended them based on this strength.

Bare bones interface, but gives me exactly what I need quickly. Web bill pay, free ATM, free checks, interest on my checking, just got set up for a 3% CD with a $50 startup (hello emergency fund). Also – AWESOME customer service. I will NEVER go back to Citibank again.

Also, all of my acounts – checking, saving, CD & Credit Card, are on one screen.

I’ve had two bank accounts hacked by phone. Someone with my info was able to talk a human bank representative at two separate banks and get access to my account, change my address, order new cards and withdraw money.

One bank now has instituted higher security. They will only take a phone call from my cell (land lines can be masked to appear as your home phone) and they issue a PIN by text (or hard token device) that is only good for a minute to allow online access.

Anyone dealing with a brick-and-mortar or online bank needs to understand that good old fashioned deceit is an easy way around all that encryption and security. All it takes is one oh-so-helpful operator to let the enemies in.

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My name is J.D. Roth. I started Get Rich Slowly in 2006 to document my personal journey as I dug out of debt. Then I shared while I learned to save and invest. Twelve years later, I've managed to reach early retirement! I'm here to help you master your money — and your life. No scams. No gimmicks. Just smart money advice to help you get rich slowly. Read more.

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